performance appraisal
TRANSCRIPT
Performance Appraisal
Chapter 7
BUAD 260
Performance Appraisal
The identification, measurement, and management of human performance in organizations.
A Model of Performance Appraisal
Identification
Measurement
Management
Dimension
An aspect of performance that determines effective job performance.
The Benefits of Performance Appraisal
Employer Perspective: Despite imperfect measurement techniques, individual differences in
performance can make a difference to company performance. Documentation of performance appraisal and feedback may be needed
for legal defense. Appraisal provides a rational basis for constructing a bonus or merit
system. Appraisal dimensions and standards can help to implement strategic
goals and clarify performance expectations. Providing individual feedback is part of the performance management
process. Despite the traditional focus on the individual, appraisal criteria can
include teamwork and the teams can be the focus of the appraisal.
The Benefits of Performance Appraisal (cont.)
Employee Perspective: Performance feedback is needed and desired. Improvement in performance requires
assessment. Fairness required that differences in
performance levels across workers be measured and have an effect on outcomes.
Assessment and recognition of performance levels can motivate workers to improve their performance.
Measurement Tools
The type of judgment that is required–Relative or absolute
The focus of the measure–Trait, behavior, or outcome
Relative and Absolute Judgment
An appraisal format that asks supervisors to compare an employee's performance to the performance of other employees doing the same job.
Relative Judgment
An appraisal format that asks supervisors to make judgments about an employee’s performance based solely on performance standards.
Absolute Judgment
Rankings and Performance Levels Across Work Teams
Actual Ranked Work
10 (High)987654321 (Low)
Ranked Work Ranked Work
Marcos (1)Uma (2)
Joyce (3)Bill (4)Richard (5)
Jill (1)
Tom (2)Sue (3)
Greg (4)Ken (5)
Frank (1)Julien (2)Lisa (3)
Jolie (4)Steve (5)
Trait Appraisal, Behavioral Appraisal & Outcome Appraisal Instruments
An appraisal tool that asks a supervisor to make judgments about worker characteristics that tend to be consistent and enduring.
An appraisal tool that asks managers to assess a worker’s behaviors.
An appraisal tool that asks managers to assess the results achieved by workers.
Trait Appraisal
Behavioral Appraisal
Outcome Appraisal
Sample Trait Scales
Rate each worker using the scales below.
Decisiveness:1 2 3 4 5 6 7Very low Moderate Very high
Reliability:1 2 3 4 5 6 7Very low Moderate Very high
Energy:1 2 3 4 5 6 7Very low Moderate Very high
Loyalty:1 2 3 4 5 6 7Very low Moderate Very high
Evaluation of Major Appraisal Formats
Absolute
Relative
Trait
Behavior
Outcome
0
++
+
0
0
+
-
-
+
0
0
-
--
++
+
Appraisal Format
Administrative Use
Developmental Use
Legal Defensibility
-- Very Poor - Poor + Good ++ Very good0 Unclear or mixed
Challenges to Effective Performance Measurement
Rater errors and bias The influence of liking Organizational politics Whether to focus on the individual
or the group Legal issues
Legal Issues A recent analysis of 295 court cases involving performance
appraisal found judges’ decisions to be favorably influenced by the following additional factors:
– Use of job analysis
– Providing written instructions
– Allowing employees to review appraisal results
– Agreement among multiple raters (if more than one was used)
– The presence of rater training
Communication Skills for the Appraisal Interview
Nonverbal Attending
Open and Closed Questions
Suggests interest and active listening.
Appropriate use of open and closed questions can ensure an effective flow of communication during an interview.
Rater sits with a slight forward, comfortable lean of the upper body, maintains eye contact, and speaks in a steady and soothing voice.
—Open questions encourage information sharing and are most appropriate early in an interview or in complex, ambiguous situations.
—Closed question evoke short responses and are useful for focusing and clarifying.
While the ratee is speaking, the rater looks at the person and gently nods head to signal interest.
— Open questions start with words like “Could,” “Would,” “How,” “What,” or “Why”.
— Closed questions start with words like “Did,” “Is,” or “Are.”
Skills Benefit Description Example
Communication Skills for the Appraisal Interview (Cont.)
Paraphrasing
Reflection of Feeling
Paraphrasing can clarify and convey to the ratee that you are listening actively.
Shows that you are trying to understand the emotional aspect of the workplace. The empathy and sensitivity of such reflection can open up communication and allow the interview to move more meaningfully to task-related issues.
A paraphrase is a concise statement in your own words of what someone has just said. It should be factual and nonjudgmental.
Similar to paraphrase, a reflection of feeling is a factual statement of the emotions you sense the other person is feeling. Be cautious about using this technique insincerely or with those who need professional help.
You might begin by saying “If I have this right…” or “What you’re saying is…” and end with “Is that correct?” or “That’s what you are saying?”
Start by saying something like “It sounds like you’re feeling…” End as you would a paraphrase (“Is that right?”).
Skills Benefit Description Example
Communication Skills for the Appraisal Interview (Cont.)
Cultural Sensitivity
Communication is more effective when you are sensitive to the possible influence of cultural differences.
Pay attention to cultural differences that may influence how another person communicates and how you might communicate with others.
When dealing with employees from a culture that is highly formal, avoid addressing them in the workplace by their first names. Doing so may signal disrespect.
Skills Benefit Description Example
Situational (System) Factors to Consider in Determining the Causes of Performance Problems
• Poor coordination of work activities among workers.• Inadequate information or instructions needed to perform a
job.• Low-quality materials.• Lack of necessary equipment.• Inability to obtain raw materials, parts, or supplies.• Inadequate financial resources.• Poor supervision.• Uncooperative coworkers and/or poor relations among
people.• Inadequate training.• Insufficient time to produce the quantity or quality of work
required.• A poor work environment (for example, cold, hot, noisy,
frequent interruptions.)
• Equipment breakdown.
How to Determine and Remedy Performance Shortfalls
Cause Questions to Ask
Ability
Effort
Situation
Possible Remedies
•Has the worker ever beenable to perform adequately?
•Can others perform the jobadequately, but not this worker?
• Is the worker’s performance level declining?
• Is performance lower on all tasks?
• Is performance erratic?•Are performance problemsshowing up in all workers,even those who have adequatesupplies and equipment?
•Train•Transfer•Redesign job•Terminate•Clarify linkage betweenperformance and rewards
•Recognize good performance
•Streamline work process•Clarify needs to suppliers•Change suppliers•Eliminate conflicting signals or demands
•Provide adequate tools
360° Feedback
The combination of peer, subordinate, and self-review
Key Steps in Implementing 360° Appraisal Top management communicates the goals of and need for
360° appraisal.
Employees and managers are involved in the development of the appraisal criteria and appraisal process.
Employees are trained in how to give and receive feedback.
Employees are informed of the nature of the 360° appraisal instrument and process.
The 360° system undergoes pilot testing in one part of the organization.
Management continuously reinforces the goals of the 360° appraisal and is ready to change the process when necessary.